The 2001 Academy Award winning film, A Beautiful Mind, introduced many to the brilliance that was Dr John Nash, a renowned Nobel and Abel Prize winning mathematician famous for theorising the Nash Equilibrium.
Taking a page from Dr Nash’s playbook, the Warrp Marketplace has introduced a world-leading crowd and community valuation system not seen in a marketplace scenario before.
Considering the layperson’s interpretation of the Nash Equilibrium, a cornerstone concept of game theory, Warrp’s relationship with the concept lies in creating the optimal outcome for buyers and sellers on its platform.
When it comes to consumer-to-consumer platforms such as online marketplaces, there is an element of non-cooperative gameplay that pitches buyers against sellers.
On the one hand you have buyers searching for the most affordable bargains, and on the other hand you have sellers looking to make the greatest profit.
This dynamic makes it difficult for both parties to come out on top; to varying degrees there are inevitable winners and losers with any transaction.
Some sell an item for less than it is worth, and others purchase goods above market rate. So, how has Warrp found an equilibrium that derives the fairest outcome for consumers on both sides of the transaction?
Warrping, that’s how.
Much like Dr Nash’s quest to truly distinguish himself with an original idea, so too has Warrp sought to break the mould with its dynamic pricing system.
Users are encouraged to value any item across the entire platform – known as Warrping. The collective price input from users on any one item over time will help gauge that item’s true market value.
Warrp Co-Founder and CEO, Matthew Ng, said the concept of Warrping items provided a fair and equitable online marketplace that increased user confidence towards both the listed products and other users.
“Sellers can accept a Buy Offer at any time at their discretion, and they can wait for the value of their item to shift every twelve hours when a new valuation is triggered based on Warrps from other users, called a PriceWarrp™,” said Mr Ng.
“Buyers too can hold off on making a Buy Offer, and instead Warrp an item to where they think its value lies. In this way the market is determining valuations naturally to establish an item’s price ‘sweet spot’.”
“No more haggling; the playing field is square and it’s an ideal outcome for both parties.”
Warrp’s proprietary pricing algorithm, presents a form of governance to stop users from Warrping an item unrealistically.
Warrp introduces a minimum and maximum acceptable Warrping range for every product, which dynamically changes as each Warrp is received to allow for the item to reach a market equilibrium sooner.
“For any economic buffs, look at it like the Consumer Goods Index, but on a more finite and infinitely simpler scale. Warrping fundamentally helps users measure the price and performance of consumer goods on the platform,” Mr Ng said.
“It is a fine balance determining a value that delivers on the objectives of both the seller and the buyer, that being the highest profit margin and the optimal bargain deal respectively. Warrping is simply an assured method of effective price positioning.”
Warrping is a chance to revolutionise the online marketplace game, a concept that resonates with Russell Crowe’s line in A Beautiful Mind: “I don’t believe in luck, but I do believe in assigning value to things.” At its very core, this is what Warrping is all about.
Australia’s newest online marketplace offers users a refreshing way to buy and sell their used and pre-loved goods. Make sure to check out the Warrp Marketplace for thousands of incredible deals, or easily list an item for sale, and start Warrping today.
You might even find A Beautiful Mind on DVD. Win-win!
Warrp is a digitally innovative iOS marketplace app that takes the hassle out of peer-to-peer shopping online with a world-first dynamic marketplace